Rakon is a NZ based manufacturer of frequency control chips which enable data transmission, particularly for satellites and the communications industry as a whole. The company forecasts HKEX:40 -43M of EBITDA for the FY23 and trades around 8x earnings. We think the company looks materially undervalued at 8x earnings, largely because the board has not declared a...
On Monday, the US dollar increased to nearly a two-week high against a range of currencies as the Federal Reserve is expected to raise interest rates by 25 basis points later this week. The dollar also gained on Friday due to elevated core inflation in March.
This week, investors will be focused on whether the Federal Reserve plans to halt interest rate...
With safe haven currencies pulling in the most buyers this week, including the yen and the US dollar, what will happen to the USD/JPY and the GBP/JPY leading up to, and after, the Interest Rate Decision due from the Bank of Japan on Friday?
Markets will likely be watching this decision super closely regardless of their expectation for the BoJ to leave interest...
In March 2023, the United Kingdom's year-on-year consumer price inflation rate decreased to 10.1% from 10.4% in February. However, it exceeded the market forecast of 9.8%, and Britain remains the country in Western Europe with the highest rate of inflation. This also marks the seventh consecutive period where the rate has remained above 10% and has been above the...
Yield Curve Control (YCC) has kept interest rates on ten-year Japanese government bonds within a narrow range close to zero percent since 2016. The Bank of Japan (BOJ) employs YCC to target short-term interest rates at -0.1% and to maintain the 10-year government bond yield within 0.5% above or below zero.
In 2016, Japan was grappling with over a decade of...
The US annual inflation rate has slowed down for the ninth month in a row, hitting 5% in March of 2023. While this is the lowest it's been since May of 2021, it's still well above the Fed's target of 2%. Investors are trying to figure out when the central bank will put the brakes on its hiking campaign to slow inflation.
The March FOMC minutes (released this...
Investors are facing a busy week of economic data that includes the release of consumer price and producer price index data for March on Wednesday and Thursday (US time), respectively. The results of these reports will help determine whether or not the Fed will pause or end its rate-hiking campaign. While investors are leaning towards a continuation of the Fed's...
Gold has managed to surge its way to US$2,020/oz, taking full advantage of the renewed weakness in the dollar price and treasury yields.
Recent data from the US showed a slowdown in the services sector growth, fewer private company job additions than expected in March, and a fall in factory orders for the second consecutive month. This suggests that the economy...
The US dollar's position as the primary global reserve currency is being challenged as countries become eager to insulate themselves from Washington’s influence.
For decades, the dollar has dominated the global monetary system. Currently, about 60 percent of foreign exchange reserves held by central banks are in US dollars, and nearly 90 percent of all currency...
The price of gold hit a high of $1,971/oz before retreating and finding support above $1,960. Upbeat equities and higher Treasury yields make it difficult for XAU/USD to continue its recent rally. Fears of a wider banking contagion have also abated, hurting demand for safer assets. The market cheered First Citizens Bank’s agreement to buy all deposits and loans of...
Which way will Bitcoin break out of last week’s range? On screen I have highlighted the price range between $29,000 and $26,700, representing the high and low of the week-long ranging period. The price has flirted with a break to the downside, touching as low as $26,500, but a confident close below $27,000 is still to occur.
Bitcoin surged in March as confidence...
Two significant events have occurred within the past 12 hours, causing both GBPUSD and gold prices to surge.
The first event was the unexpected rise in UK inflation, which jumped from 10.1% in January to 10.4% in February 2023, marking the first increase in four months. The primary factor behind this increase was the soaring food and drink prices, which surged...
The US Federal Reserve is about to begin its two-day policy meeting and will announce its latest interest rate decision 48 hours later. During the meeting, officials will weigh the possibility of raising interest rates due to inflation, which is still considered high, or whether the current turmoil in financial markets should be given more weight. Unfortunately,...
As a trader, choosing the right leverage level can have a significant impact on your trading results. Two of the most common leverage options are 1:30 and 1:500. But how do you decide which one is right for you?
To understand the difference between 1:30 and 1:500 leverage, let's take the example of trading 1 lot of EUR/USD. With 1:30 leverage, a trader would...
After a brief period of calm following the collapse of Silicon Valley Bank, Credit Suisse disclosed "material weaknesses" in their financial reporting controls and ongoing customer outflows, setting off another bout of instability across global assets. Credit Suisse's biggest investor, Saudi National Bank, also noted that it could not offer more financial support...
Over the past few days, we have seen the second and third largest bank failures in US history. A question remains whether we have seen the last of these failures and what other ripple effects could occur.
In the currency markets, the dollar index dropped below 104, reaching a three-week low for the third consecutive session. Signature and Silicon Valley Bank's...
The USD/CAD might be a popular pair to trade this week with the Bank of Canada (BoC) releasing its latest interest rate decision at the exact same time that US Federal Reserve Chairman begins the second day of his Semiannual Monetary Policy Report to Congress. These events coincide at 10am Wednesday (EST).
The Bank of Canada is expected to maintain its interest...
Forex Alert: Fed Officials' Six-Hour Speech Marathon
Will the numerous appearances of US Federal Reserve officials rock the market during the closing hours of this trading week?
Over the course of six hours leading up to the market's closing this week, we will hear from Lorie K. Logan (Dallas Fed), Raphael Bostic (Atlanta), Michelle W. Bowman (Board of...
